Super Micro Stock Dips as Earnings, Bear Signal Loom

Super Micro Computer Inc (NASDAQ:SMCI) stock is down 2.8% to trade at $34.79 at last glance, pacing for a fourth session decline out of six as the chip producer attempts to bounce back from last week's two-month low. The stock has shed 32% since its annual high of $51.40, however a historically bearish signal is now flashing on the charts.

SMCI sports a 10-day call/put volume ratio of 4.99 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 90% of readings from the past year. There have been nine instances in the last three years that the equity's 10-day buy-to-open call/put ratio crossed over 1.0 and moved into the 90th percentile.

Per Schaeffer's Senior Quantitative Analyst Rocky White, the fintech name was higher one month later 33% of the time after these signals, averaging an 12.5% loss. A move of similar magnitude would place the stock back above $85 and within a chip-shot of its August peak. 

Super Micro steps into the earnings confessional after the market closes on Tuesday, Nov. 3. SMCI has scored three-straight double digit post-earnings moves higher, but has finished lower in eight of the last 12 post-earnings reports. Regardless of direction, the stock averages a 14.2% move.